Deutsche Bank to launch Ethereum layer-2 blockchain in 2025
Deutsche Bank is developing a layer-2 (L2) blockchain on Ethereum (CRYPTO:ETH) using ZKsync technology to address compliance issues in regulated finance.
The L2 solution is part of Project Dama 2, which is associated with the Monetary Authority of Singapore’s Project Guardian.
This project includes 24 financial institutions exploring blockchain-based asset tokenisation.
According to Bloomberg, Deutsche Bank’s L2 blockchain is designed to enhance transaction efficiency while maintaining regulatory safeguards.
The solution will integrate directly with Ethereum.
The bank’s L2 platform will curate trusted validators and provide special oversight for regulators, minimising risks such as interactions with sanctioned entities.
The platform aims to align blockchain transparency with financial compliance requirements.
This initiative highlights Deutsche Bank’s efforts to incorporate blockchain technology while addressing regulatory challenges in the financial sector.
If successful, it may prompt other financial institutions to explore decentralised networks.
Deutsche Bank plans to launch the platform as a minimum viable product in 2025.
However, regulatory approval remains a key factor in determining the release.
L2 blockchains are built on top of primary layer-1 networks like Ethereum.
These blockchains offer faster and cheaper transactions compared to their layer-1 counterparts.
The technology also includes regulatory features such as “super admin rights,” which allow financial regulators to monitor and audit transactions when necessary.
In addition, Deutsche Bank recently partnered with crypto exchange Crypto.com to provide corporate banking services in Asia-Pacific markets, including Singapore, Australia, and Hong Kong.
Deutsche Bank has also hinted at potential future partnerships in the United Kingdom and other European countries.
At the time of reporting, the price of Ethereum (ETH) was $3,650.44.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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